Capital Allowances

Depreciation of capital assets charged to your business’ profit and loss account is not a tax deductible expense. Instead, tax relief at different rates is available for different types of capital expenditure in the form of capital allowances.

Overview:- Most items are eligible for the Annual Investment Allowance (AIA) of 100% in the first year (subject to limits). Cars are not eligible for AIA and instead most receive a lower capital allowance rate. Self-employed persons, partners and LLP members cannot claim capital allowances on the private use element of an asset. The treatment of disposals can be complicated.

Property Capital Allowances:– All premises contain ‘plant and machinery’: electrical, water, air-con, lifts, heating and sanitary systems, and many other assets. Our team will guide you through the latest legislation and ensure the maximum tax relief is claimed no matter what side of the property transaction you’re on. Please therefore contact us to support your every step.